The richest Chinese dared to invest in Russia

The Hong Kong billionaire and the richest man of East Asia Lee Kashin finally risk investing in Russia. Its structures took part in the private placement of NPMHOLDCO, which controls the iron ore projects of Petropavlovsk. For a couple with the ASIA Resources Fund Foundation Lee Ka-Yshina, about 7% of the NPMHoldco shares, enlisted her promise to conduct a listing on the Hong Kong Stock Exchange until 2012, writes RBC Daily .

Petropavlovsk PLC has found investors who will invest $ 60 million in the company's iron ore projects. We are talking about the private placement of the NPMHoldco shares, the new "daughter" Petropavlovsk, which transferred assets not related to gold mining. The investors became two funds - Asia Resources Fund (controlled by General Enterprise Management Services, Gems) and CEF Holdings Limited, which gave Petropavlovsk products in exchange for a share in NPMHOLDCO. Asia Resources Fund receives 5.8% ($ 50 million), and CEF Holdings will pay $ 10 million for 1.2%. Thus, the capitalization of the iron ore "daughter" is estimated at $ 860 million.

Asia Resources Fund manages a total of $ 600 million assets and invests in Asian companies operating in raw materials, transport sectors, etc. The GEMS advisory council includes former American Secretary of State Henry Kissinger, former Margaret Tatcher Lord Powell, etc. CEF Holdings Limited even 50% belongs to the Cheung Kong Holdings, the Hong Kong Caquy Fund Lee Ka-Yshin. “We are configured for our ore to be sold in China, so ties with such large investors are important for us,” said Petropavlovsk representative Alla Samokhvalova.

It is interesting that Lee Kashin already showed interest in investments in Russian assets. During the IPO Rusal, his Cheung Kong Holdings Foundation stated that he was going to purchase shares of an aluminum company worth $ 100 million. However, the list of investors who bought Rusal shares, Cheung Kong Holdings were not. “Investors love to invest when they understand that the money will go to growth,” Nikolai Sosnovsky from Uralsib notes.

However, whether the Ka-Yshin is also a more prosaic explanation: Petropavlovsk, in fact, guarantees investors the safety of their funds. The company has undertaken for two years to withdraw the iron ore "daughter" to the exchange, otherwise investors will be able to get their money back with a bonus of 8% per annum.

The statement by Petropavlovsk says that the management is considering the possibility of NPMHoldco listing on the stock exchange in Hong Kong. At the same time, other exchanges are studied: London, Moscow, Canadian, etc. The volume of placement has not yet been determined.

It should be noted that in the world ranking of billionaires of the 2010 FORBES magazine, Lee Kashin takes the 14th position.